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BP has struck a $6bn agreement to sell a majority stake in its lubricants business Castrol to a American investment group.
Details of the Major Deal
The energy major has sold a 65 percent share in Castrol, which makes oils for automobiles, bikes, and commercial machinery, to the New York firm Stonepeak.
This deal valued Castrol at $10.1 billion, with BP receiving $6 billion cash, which it will allocate to reducing debt and allow it to focus on its core business.
BP will retain a 35 percent share in Castrol, which it originally acquired in the year 2000.
Strategic Pivot and Divestment Plan
The UK-headquartered oil major said the sale represents a "milestone" in its plans to overhaul its business and strip out costs.
BP in February announced plans to sell off $20 billion worth of assets in a move to focus on its core crude oil and gas business and strengthen its financial position.
Following today's deal and earlier disclosures, the company says it is more than halfway to meeting that target.
It is also changing its approach away from investment in green energy and refocusing on its focus on oil and gas following pressure from some investors who were disappointed that its profits and stock value had lagged behind rivals.
Industry Context and Leadership Updates
Rivals such as Shell and Norway's Equinor have also scaled back plans to put money into renewables.
The Castrol sale arrives a week after BP unveiled its first female chief executive, Meg O'Neill, who will take the helm in April 2026.
Her surprise appointment occurred only three months after BP named a new chairman, Albert Manifold.
And she was handed the top job less than two years after Murray Auchincloss took over from Bernard Looney as CEO.
Continuing Business Simplification
This latest deal is the most recent in a line of divestments by the company, which included offloading its US onshore wind energy business and its Dutch mobility and convenience arm.
Acting CEO Carol Howle said the sale is a "excellent result for all parties involved".
"We are simplifying our structure, concentrating our refining and marketing on our core integrated operations, and accelerating delivery of our strategy," she stated.
